When people think about working with a Wealth Advisor, the first thing that usually comes to mind is “what will I be investing in?” And while investment advice and choosing the right investment option is certainly important, it’s only part of the picture. Choosing to work with a Wealth Advisor at PenFinancial and Aviso Wealth is really about creating an investment plan that looks at your entire life, your goals, your priorities, and your future.

One of the first questions that potential investors often ask is which account should I use – Registered Retirement Savings Plans (RSP), Tax Free Savings Account (TFSA), or First Home Savings Account (FHSA)? All of these accounts offer benefits to investors and understanding the differences between them is the first step in making a choice.

Investing: [verb] confusing process involving magic and midwifery, in which your money is swept away today with the hopes of producing more money in the future. See related terms: dreams, confusion, fees, retirement, and future.

From our previous blogs What is a TFSA, really? and What is an RRSP? you can learn both offer tax advantages to help you reach your savings goals.

A Tax-Free Savings Account, or TFSA for short, is a registered account that was launched by the Federal Government in 2009 with the goal of helping you grow your savings without paying taxes on the interest or investment income you earn. Although they’re tax-free, the government keeps track of your contributions and the earnings you accrue on your investment. It’s a bit of a deceiving name choice as there are many different investments you can hold inside a TFSA, aside from a savings account. You may hold as many TFSA contracts (or accounts) as you want, as long as you do not exceed the cumulative contribution limit. Let me break it down: